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Target (TGT) Dips More Than Broader Markets: What You Should Know

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Target (TGT) closed the most recent trading day at $144.56, moving -1.25% from the previous trading session. This change lagged the S&P 500's 0.92% loss on the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.05%.

Coming into today, shares of the retailer had gained 1.09% in the past month. In that same time, the Retail-Wholesale sector gained 0.17%, while the S&P 500 lost 1%.

Investors will be hoping for strength from Target as it approaches its next earnings release, which is expected to be August 17, 2022. On that day, Target is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 79.67%. Meanwhile, our latest consensus estimate is calling for revenue of $26.18 billion, up 4.06% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.70 per share and revenue of $110.24 billion. These totals would mark changes of -35.84% and +4%, respectively, from last year.

Any recent changes to analyst estimates for Target should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.14% lower within the past month. Target is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Target is currently trading at a Forward P/E ratio of 16.83. This valuation marks a discount compared to its industry's average Forward P/E of 20.39.

Investors should also note that TGT has a PEG ratio of 1.64 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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